Baker & McKenzie Advised A-Power in Texas Wind Project Investment
Deal Announcement
February 18, 2010
New York, NY, 18 February 2010 - Baker & McKenzie LLP has advised A-Power Energy Generation Systems, Ltd., a leading provider of distributed power generation systems in China and a fast-growing manufacturer of wind turbines, and its Chinese subsidiary, Shenyang Power Group, in the establishment of a project company that will be used to develop a 600 MW wind energy power plant located in Texas. Shenyang Power Group’s initial cash contribution for the development of the project was about US$37 million, which was funded on Friday, February 12, 2010.
The Baker & McKenzie team was led by Project Finance partner Ata Dinlenc of the New York office.
On December 16, 2009, Shenyang Power Group entered into an agreement with an affiliate of Cielo Wind Services Inc. and another investor to establish a project company for the purpose of owning, designing, developing, constructing, managing and operating the Texas Project. A-Power is designated as the turbine supplier to the Project and Cielo is under contract to develop the Project. The Project is expected to cost approximately US$1.5 billion, the majority of which is designated for wind turbine purchases. The parties are negotiating to obtain construction financing from third party lenders, including from Chinese banks, for a majority of the project costs. No construction financing commitments have been received to date.